Huntington National Bank 2014 Annual Report Download - page 77

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We use the checking account since it typically represents the primary banking relationship product. We count additional services
by type, not number of services. For example, a household that has one checking account and one mortgage, we count as having two
services. A household with four checking accounts, we count as having one service. The household relationship utilizing four or more
services is viewed to be more profitable and loyal. The overall objective, therefore, is to decrease the percentage of 1-3 services per
consumer checking account household, while increasing the percentage of those with 4 or more services. Since we have made
significant strides toward having the vast majority of our customers with 4+ services, during the 2013 second quarter, we changed our
measurement to 6+ services. We are holding ourselves to a higher performance standard.
The following table presents consumer checking account household OCR metrics:
Table 34 - Consumer Checking Household OCR Cross-sell Report
Year ended December 31
2014 2013 2012
N
umber of households (2) (3) 1,454,402 1,324,971 1,228,812
Product Penetration by Number of Services (1)
1 Service 2.8 % 3.0 % 3.1 %
2-3 Services 17.9 19.2 18.6
4-5 Services 29.9 30.2 31.1
6+ Services 49.4 47.6 47.2
Total revenue (in millions) $ 1,017.0 $ 948.1 $ 983.4
(1) The definitions and measurements used in our OCR process are periodically reviewed and updated prospectively.
(2) On March 1, 2014, Huntington acquired 9,904 Camco Financial households.
(3) On September 12, 2014, Huntington acquired 37,939 Bank of America households.
Our emphasis on cross-sell, coupled with customers being attracted by the benefits offered through our “Fair Play” banking
philosophy with programs such as 24-Hour Grace® on overdrafts and Asterisk-Free Checking™, are having a positive effect. The
percent of consumer households with 6 or more products services at the end of 2014 was 49.4%, up from 47.6% at the end of last year.
For 2014, consumer checking account households grew 10%. Total consumer checking account household revenue in 2014 was
$1,017.0 million, up $68.9 million, or 7%, from 2013.
COMMERCIAL OCR PERFORMANCE
For commercial OCR performance, there are three key performance metrics: (1) the number of commercial relationships, (2) the
number of services penetration per commercial relationship, and (3) the revenue generated. Commercial relationships include
relationships from all business segments.
The growth in the number of commercial relationships is a result of both new sales of checking accounts and improved retention
of existing commercial accounts. The overall objective is to grow the number of relationships, along with an increase in product
service distribution.
The commercial relationship is defined as a business banking or commercial banking customer with a checking account
relationship. We use this metric because we believe that the checking account anchors a business relationship and creates the
opportunity to increase our cross-sell. Multiple sales of the same type of service are counted as one service, the same as consumer.